How is an ERF schedule setup?
Two methods are acceptable for establishing an ERF: Itemized Schedule: A schedule of equipment items is established for determining an amount to be deposited annually into the ERF. The schedule must include the: type of equipment, purchase date, anticipated service life, purchase cost including installation, and annual deposit needed to replace each piece of equipment. Each individual annual deposit is calculated by dividing the purchase cost by the years in the anticipated service life column. The cumulative deposit total for all pieces of equipment will determine the required total ERF annual deposit. For a more detailed example of calculating the annual deposit, see Sample A. (PDF, 8KB) The Minimum Required ERF Balance can be determined by multiplying the required annual deposit for each piece of equipment by the number of years the equipment has been in service, and then summing the results for all equipment on the schedule. For a more detailed example of calculating the Minimum Re
